The Jaz Hotel Group, a subsidiary of Egypt’s renowned travel and tourism company Travco, has unveiled ambitious expansion plans. Alaa Akel, the CEO of Jaz Hotel Group, detailed that the company plans to inaugurate six new hotels in 2025, with an investment of $215 million. This expansion is part of a broader strategy to enhance Egypt’s tourism infrastructure and capitalize on growing visitor numbers.
The new hotels will be strategically located to maximize tourist influx:
– North Coast: Two new hotels
– Hurghada and Marsa Alam: Two hotels each in these popular southern Red Sea resort destinations
The expansion is being facilitated by the Egyptian government’s subsidized loan program, introduced to support hotel development across the country. This program, valued at EGP50 billion ($1.03 billion), offers developers loans at a significantly reduced interest rate of 12%, compared to the Egyptian central bank’s current lending rate of 28.25%.
Egypt is aiming for a substantial increase in tourist arrivals, targeting 25 million visitors by 2030, up from the record 15 million last year. To accommodate this influx, the country plans to add 240,000 to 250,000 new hotel rooms, effectively doubling the current room stock of approximately 225,000.
In addition to the Jaz Hotel Group’s plans, Egypt is actively seeking developers for its southern Red Sea peninsula of Ras Banas. A recent deal, which might serve as a model for future agreements, saw the UAE’s ADQ acquire development rights for Ras El Hekma on Egypt’s north coast for $35 billion, with the Egyptian government retaining a 35% stake in the project.
Further research indicates that these initiatives are part of a broader regional strategy to enhance the Red Sea Riviera’s appeal. Recent collaborations with international hotel chains and tourism companies suggest a focus on integrating modern luxury with Egypt’s rich cultural heritage. Additionally, the Ministry of Tourism and Antiquities has been promoting new archaeological discoveries and heritage sites to diversify tourist experiences beyond the traditional beach resorts.
According to data from the World Travel & Tourism Council, tourism contributed approximately 12% to Egypt’s GDP in 2022. The new hotel projects are expected to create thousands of jobs, both directly in hospitality and indirectly in supporting sectors such as construction, transportation, and retail.
The Jaz Hotel Group’s expansion plans are a testament to Egypt’s commitment to revitalize and expand its tourism sector. With strategic government support, international investments, and a focus on sustainable growth, Egypt is poised to enhance its position as a premier global travel destination.